why financial accounting is important in business?

Financial accounting is a specialized branch of accounting that keeps track of a company’s financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.

Financial statements prepared for this purpose meet the common needs of most users. However, financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.

Financial statements also show the results of the stewardship of management, or the accountability of management for the resources entrusted to it. Those users who wish to assess the stewardship or accountability of management do so in order that they may make economic decisions; these decisions may include, for example, whether to hold or sell their investment in the enterprise or whether to reappoint or replace the management

The links will be helpful to you.

Importance Of Financial Accounting

Financial accounting is very important in one’s business because companies operate money and if money is not being monitored and control meaning the business is in danger and will lead into bankruptcy. I got some help with this matter from www.bankruptcyexpertssunshinecoast.com.au.

Yeah! financial accounting is really needed to a business running. Its motivates managers and employees towards achieving organizational goals.

Financial accounting is very much important in order for us to know the procedure what to do and what will do.so that our business will end up progressive and successful.

financial accounting important? are you serious?- no it’s not important….ask the old guys who once worked for some little company called Enron

Most businesses want to know if they are making or losing money, right?

petrol station? wot??